Absa Bank Kenya and Simba Corporation are partnering to expand financing for vehicles and agricultural equipment, targeting businesses and individuals seeking to acquire productive assets amid persistent pressure on access to capital.
The two companies signed a memorandum of understanding that will combine Absa’s revamped asset-based financing offering with Simba Corporation’s portfolio of commercial and passenger vehicles and agricultural equipment.
The agreement allows businesses to finance up to 95% of the cost of trucks, buses, light commercial vehicles and fleet solutions, with repayment periods of as long as 72 months. School buses can qualify for 100% financing over as long as 84 months, according to the companies.
For individuals, financing of as much as 95% will be available for passenger vehicles, also repayable over 72 months.
The partnership comes as Kenyan businesses, particularly small and medium-sized enterprises, continue to face financing constraints that can limit investment in vehicles, machinery and other assets needed to expand operations.
“For many businesses, particularly SMEs, access to affordable and flexible financing remains a key barrier to acquiring the vehicles and equipment they need to grow,” Renato D’Souza, Absa Bank Kenya’s director of business banking, said at the signing ceremony.
Absa unveiled its revamped Asset-Based Finance, or ABF 2.0, proposition earlier this year, with plans to deploy KES 100 billion ($774 million) over three years to businesses and individuals. The bank is targeting sectors including manufacturing, trade and logistics, infrastructure, healthcare and education.
The collaboration with Simba extends that strategy into vehicle and agricultural equipment financing, giving customers access to assets that can directly support revenue-generating activities.
The agricultural component will provide financing of up to 90% for tractors, farm machinery, pick-ups and other equipment, with repayment periods of up to 60 months. The offering is aimed at farmers and agricultural businesses seeking to increase mechanisation and productivity.
Simba Corporation Executive Director Suraj Shah said the financing would make vehicle ownership more accessible to individuals while helping businesses acquire equipment needed to operate and expand.
The partnership also gives Absa access to Simba Corporation’s distribution and customer network across the mobility and equipment markets, while Simba gains an additional financing channel for customers purchasing its products.
For banks, asset-backed lending can provide a way to finance business expansion while tying credit to tangible assets. For customers, longer repayment periods can reduce the immediate cash-flow burden associated with acquiring vehicles and machinery, although the overall cost of financing remains an important consideration.
The agreement underscores a broader push by Kenyan lenders to direct credit toward productive assets as businesses navigate higher operating costs and seek to invest without tying up large amounts of working capital.
Absa said its ABF 2.0 proposition is intended to give customers greater flexibility, faster turnaround times and financing structures aligned with their cash flows.
“As part of our revamped Asset-Based Finance proposition, this collaboration reinforces our commitment to empowering SMEs and businesses across Kenya with the tools they need to scale, create jobs and contribute to economic growth,” D’Souza said.